Madison, Wis., April 29, 2009 — Madison Gas and Electric (MGE) filed an application with the Public Service Commission of Wisconsin (PSCW) to increase electric and natural gas rates for 2010. The company also will file with the PSCW a fuel cost credit for the remainder of 2009 due to lower-than-expected costs for natural gas used to generate electricity since Jan. 1.
The 2010 request would increase electric rates 4.5% and natural gas rates 2.2%. If approved, the average residential electric bill would increase $3.87 a month and the typical monthly gas bill would go up by $1.50. The changes are requested effective Jan. 1, 2010.
The 2009 electric rate reduction will total approximately $4.6 million or 1.9%. Beginning next month, the average electric customer will receive a monthly credit of $1.22 through the end of the year.
The company held the 2010 rate request to a minimum by working to control all business expenses including freezing executive salaries.
The primary drivers of the 2010 electric rate request are costs for the company’s portion of the new Elm Road Generating Station and transmission reliability enhancements. The change in natural gas rates is needed for infrastructure additions to the company’s gas delivery system.
MGE reduced electric costs for customers twice this year due to lower-than-expected electric fuel costs. On Jan. 1 the company reduced electric rates by $2.7 million which included cost reductions at the Elm Road Generating Station and American Transmission Company. In March a total of $5.7 million was returned to customers as a one-time refund.
MGE generates and distributes electricity to 137,000 customers in Dane County, Wis., and purchases and distributes natural gas to 141,000 customers in seven south-central and western Wisconsin counties. MGE’s parent company is MGE Energy (Nasdaq: MGEE). The company’s roots in the Madison area date back more than 150 years.
Stephen R. Kraus
Manager – Media Relations
Madison Gas and Electric Co.
E-mail address: [email protected]